The Third Industrial Revolution and its Implications for Africa

Dr. Robin Teigland Stockholm School of Economicswww.knowledgenetworking.orgwww.slideshare.net/eteigland

RobinTeigland

July 2013www.hhs.se

”No one knows everything, everyone knows something,

all knowledge resides in humanity.”

networks

Adapted from Lévy 1997

Six degrees of separation

- Milgram, 1967

Creation > curation

Where have the traditional sources of sustainable competitive advantage been?

#1

InnovationNetworks of relationships

Brand & Reputation

FIRM

Kaye 1993

#1

InnovationNetworks of relationships

Brand & Reputation

FIRM

TWhere are tomorrow’s sources of

sustainable competitive advantage?

Teigland 2010

105 emp350+

Partners

43,900+Communitymembers

15,000+Customers in 130 countries

eZ Ecosystem

• Content management software, #1 in media industry

• 250,000 sites in 170 countries• Customers: UN, FT, WSJ, Vogue, Hitachi, 3M, BMW

• 105 employees in 9 countries (US, Europe & Asia)

http://academia.edu/2846771/Are_we_in_this_together_Exploring_private-collective_knowledge_communities

30% profit margin in

commodity business

First fully crowdsourced premium fashion brand

We design We deliver

Made in

San

Francisco

From clothing to home products to ….

http://www.quirky.com/

The Quirky process

http://www.quirky.com/ge

Open innovation in automotive design/production

“Local Motors is the place for people to create influential vehicles together.”

http://localmotors.com/

ExploitationImproving

existing value creation activities

ExplorationDeveloping new value creation activities

Adapted from March 1991

Valuecreation

Talent• “Net generation”• 24x7 “mobile” talent• Entrepreneurial spirit

Technology • 3D printing• Internet of things• Robotics

Open Source

• Software • Hardware• Physibles

Convergence of…..

Finance• Crowdfunding/equity• Digital currencies• Micropayments

Open Source + 3d Printing + ICT + Talent

http://mashable.com/2013/02/13/robohand/

$60,000

$150

Where is the firm?

Open Source values of sharing

The virtual meets the physical in a growing network of labs

http://afrilabs.com/

The maker movement in Africa

iHub – KenyaHouse4Hack – RSAWoelab – Togo

Developing international entrepreneurs

South African ‘Maker’ with completely new 3D printer

design

http://www.house4hack.co.za/

Enabling the workforce through MOOCs (massively open online courses)

SMART (Software, Mobil Apps, Research & Technology) Knowledge Hubs in Tanzania

New Economy Skills for Africa Program- ICT (Tanzania)+

Coursera

http://blogs.worldbank.org/edutech/moocs-in-africa

24x7 global freelance talent

https://www.elance.com/trends/talent-available

Global Online Employment Report

Q2 2012 at Elance

http://www.freelancer.co.za

New means of payment…

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707

…and financing through Crowdfunding

http://www.slideshare.net/eteigland/crowdfunding-in-sweden

“Made in Africa” 3D printer (Togo)crowdfunded through Ulele

Winner of International Space

Apps Challenge

http://www.engineering.com/3DPrinting/3DPrintingArticles/ArticleID/5712/E-Waste-3D-Printer-to-Mars.aspx

Endless possibilities

http://opensourceecology.org/

Here comes the Immersive Internet….

O’Driscoll 2009

What are Virtual Worlds ?

http://www.youtube.com/watch?v=Quh2OiPHkm8

Platforms for unleashing creativity and revolutionizing

value creation

Innovation workshops bring together users from across the globe

https://www.youtube.com/watch?v=2kMNWBU1Yb8 

Overview− EU funded, 3 year multilateral and transversal network (LLP EACEA,

KA3 (ICT))− December 2011 – December 2014− Project Leader: University of Hull (Darren Mundy, Luisa Panichi)− 19 partners from Austria, Cyprus, France, Germany, Israel, Italy,

Netherlands, Norway, Portugal, Sweden, UK Network Aims

−Collect good practice examples in teaching and learning in virtual worlds from different subjects and national and local contexts− Facilitate transfer of core knowledge to new contexts− Provide framework for creation of pan-European virtual-world university

Expected Outcomes− Increased number of experts in virtual world education− Policy for long-term sustainability of network and its outcomes− Model for knowledge transfer− Range of dissemination events

More information: http://www.euroversity.eu/

Developing international entrepreneurs

≈1.5 bln VW accounts under age 16http://aisel.aisnet.org/misq/vol35/iss3/3/

http://www.bbc.co.uk/news/technology-20492908

Kibera, Nairobi

OpenSimulator: A value-creation ecosystem

AcademicEntrepreneurHobbyistLarge FirmNon-profitLocal PublicFederal PublicResearch InstSME EmployeePeriphery

USD 5.5mln in development

costs

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2271529

From the mobility of goods to the mobility of financial capital to …

...the “mobility” of labor?

http://journals.tdl.org/jvwr/index.php/jvwr/article/view/866

Out now – by Palgrave Macmillan

http://www.amazon.com/The-Immersive-Internet-Reflections-Entangling/dp/1137283017

History tends to repeat itself….Innovation, financial crisis, industrial revolution,

…

Steam engine

Internal combustion

engine

Microelectronics

Late 18th C Late 19th C Late 20th C

Schön 2008

Third industrial revolution?

Increasing pace of change

Average lifespan of company on S&P 500−1920s – 67 years−2010s – 15 years

Dr. Richard Foster, Yale, Sept 2012−Today's rate of change is faster than ever −E.g., prediction is by 2020, > 75% of S&P

500 will be companies we do not know about today

http://www.fastcompany.com/3001444/what-zara-pg-and-berlitz-know-about-agility

The Firm

The Collective

vs

E.g., Microsoft~ Built by employees within

organizational boundaries

E.g., OpenSimulator~ Built by users and distributed freely regardless of affiliation

Models of Knowledge Creation

Teigland, Di Gangi, & Yetis 2012

? ???

From factories to office parks to….

? ???

Here today, gone tomorrow?

The virtuous cycle of innovation

Innovation Exchange

Exchange Trust

Trust RelationshipsRelationships Interaction

Karinda Rhode

aka Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

www.nordicworlds.net RobinTeigland

Photo: Lindholm, Metro

Photo: Nordenskiöld

Photo: Lindqvist

If you love knowledge, set it

free…

Do you have some good case studies to share?

We are looking for examples of interesting developments in Africa related to the content of this presentation to include in our study.

Please contact us if you have something to share or someone else whom you think we should contact.

Twitter: robinteiglandEmail: robin.teigland<at>hhs.se

Thank you very much!!

Some of our related publications

Breaking out of the Bank – a report on the digital currency Bitcoin: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=226370

Crowdfunding in Sweden – a report on the crowdfunding phenomenon in general and the specific case in Sweden: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2289134

eZ Systems and its ecosystem: http://academia.edu/2846771/Are_we_in_this_together_Exploring_private-collective_knowledge_communities

Immersive Internet – a discussion of virtual worlds and the immersive internet: http://www.palgrave.com/products/title.aspx?pid=642471

A study of the virtual world organization Peace Train - http://journals.tdl.org/jvwr/index.php/jvwr/article/view/866

User innovation in virtual worlds: http://journals.tdl.org/jvwr/index.php/jvwr/article/view/819

Open Entrepreneurship - Exploring value-creation ecosystems - http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2271529